Most Australian employees are entitled to the Superannuation Guarantee (SG) — but there are specific categories of workers and situations where SG does not apply. Understanding these exemptions is important for both employers and workers.
General Rule — Who Gets SG
An employer must pay SG for an eligible employee who is:
- 18 years old or older, or under 18 and working more than 30 hours per week
- Paid $450 or more per month — note: this threshold was abolished from 1 July 2022. All eligible employees now receive SG regardless of earnings
Categories Exempt from SG
1. Self-employed (sole traders, ABN holders contracting for results)
People who are genuinely self-employed — working under an ABN, providing results (not labour), and with multiple clients — are not employees and therefore not entitled to SG from clients or principals.
However: If you work mainly for one principal, your contract is mainly for your labour, and you work under direction, the ATO may classify you as an employee for SG purposes even if you have an ABN.
Use the ATO Employee vs Contractor decision tool to check your status.
2. Company directors (with no director’s fees)
Directors who receive no remuneration or receive only shareholder dividends (not wages or director’s fees) are not entitled to SG on those amounts. However, directors receiving director’s fees or wages are entitled to SG on those payments.
3. Non-resident employees working entirely outside Australia
Employees who are non-residents working entirely outside Australia for an Australian employer are generally exempt from SG. The employer’s obligations follow the employee’s work location.
4. Australian residents working overseas for a foreign employer
If you work for a non-Australian employer overseas, that employer has no Australian SG obligation.
5. Domestic workers (historically)
Prior to 2022, private domestic workers paid less than $450/month were exempt. The abolition of the $450/month threshold brought most domestic workers into SG coverage.
6. Those paid by non-cash benefits only
If remuneration is purely in non-cash form (e.g., board and lodging for farm workers), specific SG rules may apply differently. ATO guidance should be consulted.
7. Members of religious orders
Members of religious orders who take a vow of poverty and have their needs met by the order are exempt from SG.
The Contractor Problem — When ABN Doesn’t Mean Exempt
A common mistake is assuming that any worker with an ABN is automatically exempt from SG. The ATO applies a multi-factor test. A contractor is entitled to SG if the contract is wholly or principally for their labour (even if they call themselves a contractor).
Key indicators that SG applies to a contractor:
- You provide labour, not results (you’re paid for time, not delivery)
- You work under direction and control
- You supply primarily your own labour (not a team, equipment, or premises)
Key indicators that SG does not apply:
- You provide a result (e.g., a completed software system)
- You can subcontract the work to others
- You use your own equipment and premises
- You have multiple clients simultaneously
What If SG Wasn’t Paid When It Should Have Been?
If you believe you were wrongly classified as exempt from SG:
- Use the ATO’s contractor decision tool to assess your status
- Report to the ATO via their online tip-off system or by calling 13 10 20
- The ATO can audit employers and require payment of the Super Guarantee Charge (SGC) — including interest and penalties — for unpaid SG
There is a 5-year time limit (from the relevant SG period) for the ATO to assess an employer for SGC, so acting promptly matters.
Frequently Asked Questions
Am I entitled to super as a casual worker? Yes — casual employees are entitled to SG. The $450/month threshold that historically excluded many casuals was abolished on 1 July 2022.
Can an employer and employee agree to opt out of SG? No — SG obligations cannot be waived by agreement. Any such agreement is void and the employer remains liable for unpaid SG.
Do overseas workers on Australian visas get super? Generally yes, if they are employed by an Australian employer and working in Australia. DASP (Departing Australia Superannuation Payment) allows temporary residents to claim their accumulated super when they permanently leave Australia. See Super for Temporary Residents.
For more: Government Super Schemes, Employer Super Obligations, Super Guarantee Charge, Super for Casual Employees. For advice on your specific employment situation, speak with a licensed financial adviser or employment lawyer via MoneySmart.